Egypt and Arab countries trade exchange hits $22bn

Reuters/Rodrigo Garrido

The volume of trade exchange between Egypt and Arab countries reached $21.9 billion during the first nine months of 2022, compared to $18.4 billion in the previous year, Ahram Online newspaper reported, citing the Egyptian Central Agency for Public Mobilisation and Statistics.

Egypt’s exports to Arab countries climbed to $8.8 billion during the period, up 7.6 percent from $8.2 billion in the same period in 2021.

Saudi Arabia was ranked first among the top importing Arab countries, followed by the UAE, Libya and Sudan.

Egypt’s imports from Arab countries jumped by 27.9 percent to $13.1 billion in the first nine months of 2022, compared to $10.3 billion in the same period last year.

Meanwhile, Arab investments in Egypt rose 163.8 percent to $8.2 billion in FY 2021/2022, compared to $3.1 billion last year.

Egypt has been suffering a severe shortage of foreign currency despite a 14.5 percent devaluation on October 27 and the announcement of a $3 billion support package with the International Monetary Fund, Reuters reported.

The lack of dollars has tightened the flow of imports for factory and retail inputs.

“The pound’s depreciation against the US dollar led to a marked increase in prices paid for raw materials, which have already been exacerbated by import restrictions since early 2022,” said S&P Global economist David Owen.